India’s Jute Ban Isn’t Just About Fabric—It’s About Power

Image Source: NDTV

India has imposed new restrictions on imports of jute, woven fabrics, and yarn from Bangladesh, barring their entry through all land ports. The move, effective immediately, is aimed at protecting domestic industries and tightening oversight on cross-border trade.

Key Highlights:

The Directorate General of Foreign Trade (DGFT) announced that these goods can now only enter India via the Nhava Sheva seaport in Maharashtra, closing all land border crossings for these items.

The ban covers a wide range of products, including jute yarn, flax tow, woven jute fabrics, and other bast fibres. Re-exports of these goods from Nepal or Bhutan back into India are also prohibited.

Officials say the decision is meant to shield Indian jute farmers and manufacturers from the impact of subsidised Bangladeshi imports, which have reportedly depressed prices and hurt local livelihoods.

The jute industry in India employs nearly four lakh workers across states like West Bengal, Bihar, Assam, and Odisha. Industry experts estimate the move could boost domestic production by ₹1,000–2,000 crore annually.

This isn’t the first restriction. In recent months, India has also limited imports of ready-made garments and processed foods from Bangladesh to select seaports, citing similar concerns.

While Indian producers have welcomed the decision, Bangladeshi exporters—who rely heavily on land routes for trade worth over $700 million—are expected to face higher costs and delays.

The broader impact on India-Bangladesh trade remains to be seen, but the message is clear: land borders are no longer open for business as usual.

Sources: The Hindu BusinessLine, BusinessWorld, MSN New